Credit Linked Capital Subsidy Scheme

GOVERNMENT OF INDIA Revised Guidelines on Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation of Small Scale Industries (SSI) (As on April 20, 2006) Office of the Development Commissioner (MSME) of Small Scale Industries Government of India Nirman Bhavan, New Delhi-110011

These guidelines can also be downloaded from the following Websites : www.smallindustryindia.gov.in

www.laghu-udyog.gov.in

With reference to the discussion had with your staff today, the brief details of the scheme, checklist of documents required are below: The Central Government is operating a scheme for MSME / SSI units for Technology Up gradation called as Credit Linked Capital Subsidy Scheme (CLCSS). The Scheme details and our services are briefed below:

Credit Linked Capital Subsidy Scheme (CLCSS) for SSI / MSME by the Ministry of MSME - Government of India

About the Scheme:

This revised scheme aims at facilitating technology up gradation by providing 15 % upfront capital subsidy with effect from October 2005 to MSME units, on institutional finance availed of by them for induction of well established and improved technologies in the specified sub-sectors / products approved under the scheme. The revised ceiling on the cost of the machinery for availing the benefit under this scheme is Rs. 100 lakhs. Maximum subsidy amount is Rs 15 lakhs. This scheme is extended for XI five year plan i.e. till the year March 2012. For further details log on to www.laghu-udyog.com/schemes/sccredit.htm

Eligibility Criteria:

    Purchase of machinery after October 2011.

SSI Registered unit with investment in Plant & Machinery is less than Rs 5 Crores prior to the purchase of the machinery.

Availed Term loan for purchase of the machinery thru Nationalized banks / KSFC Your industry and the machinery are in accordance with the scheme table.

Checklist of Documents Required:

          Copy of SSI Registration Certificate.

Copy of Term Loan Sanction Letter.

Copy of Bank term loan statement of account showing release dates.

Copy of the machinery invoice(s) with the bill of entry (Imports).

Audited Balance sheet for the last three years prior to Loan sanctions., or Copy of project Report submitted to the Bank Company letterhead – 6 numbers.

Stamp Paper – Rs. 200/- in the name of the unit.

Name of Proprietor/ Partners/ Directors of Company.

Their age, fathers/ spouse name, residential address. Date of installation of each machine and date put to commercial use.

Increase in Capacity after installation of machinery – monthly – PL sales etc.

Generally subsidy is approved between 9 to 12 months time and disbursed in about 3 months time. The Subsidy is remitted directly to the loan account of the beneficiary’s bank.

Arkays Corporate Services official help desk of KASSIA is providing the CLCSS documentation and end to end services on behalf of the SME units. We have pioneered the skills of processing and preparing highly accurate claims/ documents to Banks/ SIDBI. Fees Payable - 8% of the subsidy amount of which 4% payable in advance at the time of submission of application and the balance when the subsidy is credited to the bank account. More than 1700 units in and around Bangalore have claimed subsidy/year thru our professional and committed service.

Thanks & Regards,

Ms. Krupali Talekar I

Mumbai – Operation Head I SME Services, F-10, Dreams Mall, Opp. LBS Road, Near BMC Market Bldg., Station Road, Bhandup (W), Mumbai – 400 078

Contact : 022- 65270702 / 8286009922 l Mr. Shailendra Parab I

Director - Mumbai Operation I Email: - [email protected] | [email protected] l

Ms. Pankaja l

Banglore – Operation Head l SME Services, No. 260/9, Abhiram Complex, 3rd floor, 17th Cross, Sampige Road, Malleswaram, Banglore – 560 003

Contact : 040 –4200 9342 Mr. R Venkatesh l

Director – Bangalore Operation l Email ID : [email protected] l

Branches : Chennai, Coimbatore, Hyderabad, Cochin, Delhi, Calcutta, Shimago, Mysore, Pinia etc.